Manufacturing sector output up over 8% in Q3

Taipei, Taiwan's manufacturing sector continued to ride the wave of strong global demand in the third quarter as its production value rose on a year-on-year basis for an eighth straight quarter, the Ministry of Economic Affairs (MOEA) said Monday.

Data compiled by the MOEA showed the output value of local manufacturers rose 8.39 percent in the July-September period from a year earlier to NT$3.63 trillion (US$117 billion), after a 9.05 percent increase in the second quarter.

The output of electronics component makers totaled NT$978.1 billion, up 2.53 percent from a year earlier, on the back of launches of mobile devices by international brands and an increase in prices of dynamic random access memory chips, the data showed.

After two quarters of declines, the computer/optoelectronics sector saw output value edge 0.45 percent higher to NT$165 billion in the quarter due to growth in the production of computers, solid-state drives, and semiconductor inspection equipment, the MOEA said.

The production value of the chemical sector rose 22.36 percent from a year earlier to NT$527 billion in the third quarter as rising crude oil prices continued to boost chemical product prices during the three-month period, the data showed.

The base metal and machinery sectors saw gains in production of 18.66 percent and 5.16 percent, respectively, from a year earlier to NT$390.7 billion and NT$182.9 billion in the third quarter, according to MOEA data.

Looking ahead, the fourth quarter is a traditional peak season for the local electronics industry and is expected to drive up the output of Taiwan's overall manufacturing sector for the ninth straight quarter, the MOEA said.

The ministry cautioned, however, that the sector could be hurt by rising trade friction between the United States and China and a downtrend in raw material prices.

Source: Focus Taiwan News Channel